Can you rent a house out if you still owe payments on it?

Question

If you bought a house and got a loan through a bank, can you rent the house to someone even though you still owe 60,000 on it? Go easy I am 13 years old. I asked this question to my Mom and she doesn't know.

Answer 1

yes you can rent it out.  there may be tax considerations as it is now considered an income property.

Answer 2

Yes legally you can. However, there are other financial concerns relating to turning a property into a rental income property. So you may want to research "rental income ownership". This has different taxes issues, than just owning and living in the property.   Hope that helps.

Answer 3

Yes, just make sure you make your payments.

Answer 4

Mom needs to read the loan agreement , and see a lawyer to get it modified. See may go in to for-closer, but under present market conditions lander will remove such clauses, lots of people rent it at a loss to recover at least some of the cost of ownership. In the mean time hope that the market will recover and they may enjoy thing like depreciation on the property and derive other tax and other benefits.

It will be a tricky thing to pull off but it can be done.

As a rule you should be able to, but lots of pitfalls, like bad renter or other things.

Answer 5

YES- you just want to make sure the rent covers- the mortgage, the taxes and any extra fees like garbage removable so you don't lose any money.

Many people whom rent homes- don't owe the homes in the clear just yet- they put the renter's money towards the mortgage to pay off the home.